Pilot scheme to boost PE fund sector
By Zhang Fengming |
April 12, 2010, Monday
|
Print Edition
Print Edition
SHANGHAI will launch a pilot program in Pudong New Area to help foreign investors access domestic private equity funds more easily as part of broad moves to push the city toward its goal as a global financial hub, a vice mayor said over the weekend.
The city is preparing to introduce a trial for the qualified foreign limited partner, or QFLP, to allow selected foreign investors use their yuan quota to invest in domestic private equity funds, said Tu Guangshao, vice mayor of Shanghai, at the Second Shanghai Forum on Asian Financial Cooperation on Saturday.
The program aims to overcome the difficulties of converting foreign currencies into yuan, which is one of the main hurdles for overseas firms to invest in China's PE market.
"I believe that a breakthrough can be made this year for more financial innovations such as opening up the bond market and the international board at the Shanghai Stock Exchange," said Tu.
Shanghai is steadily moving toward its aim to be a global financial hub and opening up the capital market is a key step, Tu said. He didn't give a time table for the start of the QFLP program.
The QFLP scheme takes off from a similar one in the stock market - the qualified foreign institutional investors program. In the QFII program, overseas companies are allotted a yuan quota to invest in China's stock market without the need to apply for currency exchange on each transaction. The QFII helps smooth investments by overseas firms in the domestic capital market.
Shanghai is boosting the PE sector with several preferential policies, including tax breaks, subsidies and cash incentives, especially in Pudong where the government has provided up to 15 million yuan (US$2.20 million) in benefits for PE investors who set up funds or management firms there.
The city is preparing to introduce a trial for the qualified foreign limited partner, or QFLP, to allow selected foreign investors use their yuan quota to invest in domestic private equity funds, said Tu Guangshao, vice mayor of Shanghai, at the Second Shanghai Forum on Asian Financial Cooperation on Saturday.
The program aims to overcome the difficulties of converting foreign currencies into yuan, which is one of the main hurdles for overseas firms to invest in China's PE market.
"I believe that a breakthrough can be made this year for more financial innovations such as opening up the bond market and the international board at the Shanghai Stock Exchange," said Tu.
Shanghai is steadily moving toward its aim to be a global financial hub and opening up the capital market is a key step, Tu said. He didn't give a time table for the start of the QFLP program.
The QFLP scheme takes off from a similar one in the stock market - the qualified foreign institutional investors program. In the QFII program, overseas companies are allotted a yuan quota to invest in China's stock market without the need to apply for currency exchange on each transaction. The QFII helps smooth investments by overseas firms in the domestic capital market.
Shanghai is boosting the PE sector with several preferential policies, including tax breaks, subsidies and cash incentives, especially in Pudong where the government has provided up to 15 million yuan (US$2.20 million) in benefits for PE investors who set up funds or management firms there.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
